Disk Drive Sector Discussion Forum Message Board

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Technology Stocks : Disk Drive Sector Discussion Forum

WDC 180.91

+6.7%

3:13 PM EST

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To: TEMFASSBAL who wrote (5010)	11/23/1998 3:09:00 AM
From: Z Analyzer	Read Replies (2) of 9256

Thanks Tim. Couldn't have said it better myself. However, I believe that the optimistic scenario is that if HTCH is hitting these kinds of numbers and dominating wireless production, selling TSA flexures to their competitors and sampling proprietary microactuation, that a 12 p/e may be way low. To me, it is not insignificant that none of HTCH's competitors have yet been able to qualify a wireless suspension during a time when some drives are literally not being produced due to lack of them. Nor that all their competitors have programs to develop wireless suspensions using TSA flexures purchased from HTCH. (Dell should have anything so proprietary.) Add in the growth in PC sales apparently resulting from a greater price elasticity than previously assumed, an Asia economic recovery and the beginning of a very exciting trend in home video storage and there exists a possibility that HTCH could become a "hot " stock. Aside from earnings, Dec 98 revenues look fairly certain to be up over 65% from Dec 97, with impressive sequential growth and at least 60% year over year growth taking place every qtr through Sept 99. Remember Wayne Fortune's comment last summer about 500% revenue growth by 2003? Clearly, I am looking at the optimistic scenario and am now in the comfortable position of playing with the house's money so that if HTCH has gotten a little ahead of itself, I can live with that. And, if it hasn't, so much the better. Hope all is well down under Mark. Z

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